Old Lady of Threadneedle Street to Pay Millions for ‘Amended Implementation Methodology’
The Bank of England has nearly doubled its spending on an Oracle cloud transformation project first conceived in 2020.
A recently published procurement notice reveals that the 330-year-old institution has increased its contract with Oracle implementation partner Version 1 to £13.8 million—a sharp rise from the initially awarded £8.7 million and nearly double the £7 million originally advertised. But when you print the money, who’s keeping track?
The Costly Shift in Strategy
Beyond acquiring some additional software, the bulk of the increase—£4.07 million—stems from an “amended implementation methodology,” shifting from a two-phase to a multi-phase approach, with Oracle modules going live based on the Bank’s priorities.
When pressed for details—such as whether project timelines had slipped or if a new go-live date was set—the Bank responded with the ease of a man sipping port in an oak-paneled room, looking forward to a generous pension.
“The Bank is implementing Oracle Cloud to consolidate several different systems, which will help fulfill its mission. We aim to achieve value for money in all our procurement,” a spokesperson stated.
A History of Increasing Costs
The Bank of England, a public institution, funds itself through regulated fees, banknote printing, banking services, government agency management fees, and long-term investments. It claims to generate more income than it spends, contributing millions to the UK Treasury.
Originally, the contract was advertised in September 2022 for £7 million after the Bank began considering a cloud migration in 2020. Logica previously supported the Oracle HR system.
Version 1 secured its initial £8.7 million contract in September 2023, with the project set to last 55 months (plus an optional 24-month extension). The goal was to enhance finance, procurement, and recruitment functions using Oracle Cloud to drive sustainable business change.
The Real ‘Step Change’
So far, however, the only noticeable “step change” has been in the project’s cost—and the rewards reaped by its tech supplier. ®
